Starbucks stock drops after report questions momentum

Starbucks stock retreated Tuesday in heavy volume after a research report suggested the coffee chain's growth may be losing some steam.

"Coming off two very strong quarters, our proprietary data indicates the chain's momentum may have slowed this quarter. We believe sales growth will likely continue to be driven primarily by increased traffic and innovative food and beverage offerings," ITG Investment Research's Steve West wrote in a report.

On Starbucks 2014 outlook, Troy Alstead, Starbucks CFO, says they plan to add 100 more stores than they have in the past year. Everything that drove record results in 2013, there is more of that on the way, adds Alstead.

In a little more than two hours after the opening bell, about 5.7 million shares had already been traded, higher than the stock's 30-day average daily volume of 4.6 million shares.

ITG forecast the company would deliver 5 to 6 percent U.S. same-store sales growth during its current fiscal first quarter. It noted that the firm's proprietary data showed slowing trends since data from October and November were worse than September.

This predicted level of growth is lower than the 8 percent comparable store sales growth the company saw during its fiscal year 2013, which ended in late September.